What Happened?
Shares of tanking company Scorpio Tankers (NYSE: STNG) jumped 4.7% in the afternoon session after the stock continued to rally as the company reported second-quarter 2025 earnings that surpassed analysts' expectations on both the top and bottom lines. The company posted earnings per share (EPS) of $1.53, handily beating the consensus forecast of $1.05. Revenue also came in strong at $230.2 million, surpassing the anticipated $218.9 million. This robust performance demonstrates operational strength and comes at a time when freight rates in certain segments, like the LR2 tanker market in the Middle East, have recently weakened. Scorpio's results were supported by its strategic advantages, including maintaining one of the youngest fleets in the industry and a strong balance sheet, with its net debt considered safe. Following the strong report, several analysts have revised their future earnings expectations upward.
After the initial pop the shares cooled down to $47.05, up 4.6% from previous close.
Is now the time to buy Scorpio Tankers? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Scorpio Tankers’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock gained 3.2% on the news that the company reported second-quarter financial results that beat analyst expectations for both revenue and profit. The product tanker company posted revenue of $230.2 million and a GAAP profit of $1.53 per share, which was 46% above consensus forecasts. In addition to the strong earnings, Scorpio Tankers' board of directors declared a quarterly cash dividend of $0.40 per share. While the company's revenue fell compared to the prior year, when market conditions were more favorable, the significant earnings beat and dividend declaration seemed to fuel positive sentiment among investors.
Scorpio Tankers is down 6% since the beginning of the year, and at $47.05 per share, it is trading 36.7% below its 52-week high of $74.31 from October 2024. Investors who bought $1,000 worth of Scorpio Tankers’s shares 5 years ago would now be looking at an investment worth $3,711.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
